From Ohio History Central
On June 28, 1934, the United States Congress passed the Federal Housing Act (FHA). The FHA was part of President Franklin Delano Roosevelt's New Deal. Roosevelt hoped that his New Deal would allow Americans to cope with the Great Depression, would help end the current economic downturn, and would help prevent another depression from occurring in the future.
The Federal Housing Act created the Federal Housing Administration. The Federal Housing Administration was to insure mortgages of lower-income Americans, helping these people acquire financing through private banks and other financial institutions. In 1937, the U.S. Housing Authority replaced the Federal Housing Administration. This new organization continued the earlier programs of the Federal Housing Administration. It also provided loans to local governments to build public housing complexes for lower-income residents.
The Federal Housing Administration and the U.S. Housing Authority assisted Ohioans in coping with the Great Depression. Several Ohio cities used federal government funds to build federally-funded housing projects. The first two such projects completed in the United States were actually located in Cincinnati and Cleveland. Since the 1930s, the federal government has amended the Federal Housing Act, but many of the programs begun during the Great Depression remain today to provide assistance to lower-income Americans.